Analog

Analog signals are continuous in both time and value. Analog signals are used in many
systems, although the use of analog signals has declined with the advent of cheap digital
signals. All natural signals are Analog in nature.
Digital
Digital signals are discrete in time and value. Digital signals are signals that are represented
by binary numbers, "1" or "0". The 1 and 0 values can correspond to different discrete
voltage values, and any signal that doesn't quite fit into the scheme just gets rounded off.
Digital signals are sampled, quantized & encoded version of continuous time signals which
they represent. In addition, some techniques also make the signal undergo encryption to
make the system more tolerent to the channel.